Midwest Business Group on Health survey provides roadmap for employers
CHICAGO – October 31, 2024 – Rising health care costs have far reaching impact with 93% of employers expressing concerns about their ability to remain competitive and 89% noting that it may lead to further shifting of costs to employees. These are among the findings from the latest purchaser survey conducted by the non-profit Midwest Business Group on Health (MBGH).
The study conducted with the National Alliance of Healthcare Purchaser Coalitions and sister coalitions gauged concerns and approaches of employers to address the workforce environment, women’s health, obesity management, mental health, equity, pharmaceutical drug and hospital prices, high-cost claims, fiduciary strategies and potential health reforms.
“With so many moving parts across the health care and health benefits spectrum, employers must always be a step ahead,” said Cheryl Larson, president and CEO of MBGH. “Between unsustainable cost increases, the economy and employers ensuring they are meeting their fiduciary responsibility, it’s no longer about just controlling costs. Our annual employer survey provides a roadmap for employers to achieve true cost transparency, identify ways to request and receive their claims data and hold vendors accountable.”
Key findings include:
- Health care affordability threats – The most significant threats to the affordability of employer-provided care are drug prices (98%), high-cost claims (82%) and hospital prices (74%)
- Managing PBM vendors – Over half of employers said they are under contract with one of the “Big Three” firms and another half said that they are considering changing their PBM vendor in the next 1-3 years due to concerns about cost and transparency
- Drug strategies – More employers are focused on the promotion and inclusion of biosimilars on their drug formulary (67%) and while only 37% include cell and gene therapies, another 33% are considering adding in the future
- Health equity – Almost 44% said they analyze claims based on geographic locations; 24% place accountability for health equity in service provider contracts; and 26% are collecting qualitative data on their programs and employee needs through focus groups
- Women’s health – 86% of respondents are offering parental leave and 83% offer maternity support services; 67% offer reproductive health care and fertility services; and 33% are offering menopause support and services
- Mental health – While the biggest area of mental health focus is offering programs to educate people on stigma and bias, 63% of respondents are evaluating and promoting cultural competency and diversity with 49% establishing vendor accountability through actions such as performance metrics
- Obesity management – A significant majority (88%) offer lifestyle programs such as exercise and nutrition; 63% cover branded GLP-1 medications, and 68% cover other anti-obesity medications
The online survey was conducted in September and October with 53 MBGH employer members responding. Organizations represented ranged in size with 26% having less than 5,000 employees and 55% with more than 10,000 employees, from industries including manufacturing, government, education and health care.
About the Midwest Business Group on Health
Midwest Business Group on Health (MBGH) is a 501(c)(3) non-profit supporting employers seeking solutions to better manage the high cost of health care and the health and productivity of their covered populations. Founded in 1980, MBGH offers members leading educational programs, employer-directed research projects, purchasing opportunities, and community-based activities that increase the value of health care services and the health benefits they offer to members. MBGH serves over 150 companies that provide benefits to over 4 million lives, with employer members spending more than $15 billion on health care each year. For additional details visit MBGH.org and follow us on LinkedIn.